On Saturday, federal appellate judges temporarily blocked an Atlanta-based venture fund from awarding $20,000 grants to Black female entrepreneurs.
The decision came just days after Senior U.S. Judge Thomas Thrash denied a preliminary injunction blocking the grants by the Atlanta-based Fearless Fund. In their decision, the panel wrote that the program was “racially exclusionary” and “substantially likely” to violate a federal law prohibiting racial discrimination in contracting.
In a joint statement, the founders of the Fearless Fund, Arian Simone and Ayana Parsons, praised Thrash’s decision at the time.
“The foundation and the incredible work that we have done will continue to go on as we continue to be covered,” said Parsons at a press conference. “Thank you for investing in us and investing in women of color so we that can do this incredible work.”
When they make helping Black people illegal, how will you resist? Unfortunately, this isn’t theoretical. #FearlessFund
— Lurie Daniel Favors Esq. (@LurieFavors) October 2, 2023
The #LurieDanielFavorsShow airs live on @siriusxm @sxmurbanview Channel 126 Mon – Fri 10 am EST. #BlackLawyersMatter #BlackRadioMatters https://t.co/fJ2a9E8Pfd
The win was short-lived, as the 11th Circuit Court of Appeals in Atlanta decided to move forward with blocking the program/
The American Alliance for Equal Rights (AAER) filed a motion to prevent the Fearless Fund from giving grants only to Black women. Initially, the group, led by the anti-affirmative action conservative Edward Blum, filed to temporarily block the program, claiming it was “racially exclusive.”
The Fearless Fund runs the grant contest four times a year. Eligible applicants must be at least 51% owned by a Black woman, among other qualifications.
“We strongly disagree with the decision and remain resolute in our mission and commitment to address the unacceptable disparities that exist for Black women and other women of color in the venture capital space,” the Fearless Fund said.
The AAER celebrated the provisional win in court.
“The members of the American Alliance for Equal Rights are gratified that the 11th Circuit has recognized the likelihood that the Fearless Strivers Grant Contest is illegal,” Blum said in a statement. “We look forward to the final resolution of this lawsuit.”
The block is temporary and can still be overturned.
